Assuming Positive Pay File is not implemented, how would a company stop a vendor company or an employee who has just left the company cashing a check they have received and then declared damaged or lost, while the company decides to process another check to be sent to the vendor or employee?

Thank you Hasan. My question was asked before you covered this topic. However, I have a question, here, at the end. Please, help!

The company would ask its bank to stop the check with the given number. Mean while, the company will Initiate a Stop to the check. When the bank actually stops the check, the company will void the check in the Payables system. The company can now (or during all this time) send another check to the vendor company or the employee to pay the invoice in question.

Assuming that the beneficiary has received and cashed the second check after declaring the first check lost, then managed to slip through the bank payment security system by presenting and cashing the first check (initially declared lost).

Would be the accounting implication and how the Payables department would handle this scenario?

I am not an expert in security but I have never seen a situation when one requests a bank to stop the payment and resend another check without waiting to get a response from the bank.

This is normal:
1) You decide to stop the payment
2) You call bank to stop the payment
3) You mark stop payment in the system
4) Bank gets back to you with either YES or NO
5) You void the payment if bank was able to stop the check. You remove the stop if bank was not able to void
6) Now you can resend another check to the vendor. (You will not do this step 6 before step 4).